Abstract: he effective investment and finance mechanism will bring in more efficient technological innovation activities to improve technological innovation capability and economic growth. The previous research works on technological innovation capability are summed up, the concept of investment-oriented investment and financing mechanism is brought forward, and an empirical study on the influence of investment and finance mechanism on technological innovation capability in view of the data of provincial-level regions is carried out. In conclusion, investment on technological innovation mainly imposes its influence on technological innovation capability in three aspects, that is, investment volume, investment structure, and the term of years during which it functions; financing technological innovation imposes its influence on technological innovation capability in two aspects, namely, finance structure and financing matching degree. It is necessary to make policy and construct consummate investment and financing mechanism according to the characteristics of Chinese investment and financing mechanism, in order to improve technological innovation capability and to promote economic and social development better.

Key words: investment and finance mechanism, technological innovation, investment-oriented